What's Up With Inflation?

One of the opinions I see again and again on ATS is that the "elites" are trying to convince people that what's happening is not really happening. Such as there is no voter fraud, that unsecured borders are not a threat or that fracking could not be causing harm to the environment.

One glaring bit of disinformation that has been a pet peeve of mine is the FED's insisting that inflation is almost nonexistent. Currently they say it is about 1%. Does anyone actually believe this?

St. Louis Federal Reserve President James Bullard said Wednesday that inflation continues to run on the low side, but that doesn't mean excessive inflation couldn't return in the future.

Personally I shudder to think what excessive is if we have low inflation now.

Despite broad concerns over the effect of the Fed's $85-billion-per-month bond-buying program, so far inflation has not materialized.

Source
WHAT!!! You have got to be kidding me! Regardless of the FED's super-duper inflation measuring tool pretty much anyone in the world who actually has to go shop for food, gas or shelter knows we are getting monkey-hammered.

I submit that the Central Banks along with governments are in active collusion to keep the worker class from realizing that "the building is on fire" so to speak. Keep the workers in their place, maintain the status qua, nothing to see here. They will keep this up until the end.

The following article about reality based inflation (for most of us at least 9%) can be found here. What's Up With Inflation?

reply to post by Bassago


Well, you know the gov't doesn't include the price of oil or food in their inflation index - those things are just too darn volatile -

even though they are the things all of us eventually have to buy.

The local news guy went around to some food stores a few weeks ago, and compared his receipts for the same items from 2010.

I think he figured the increase to be around 30%, which is right on the money with my receipts as well.

Yeah, I'm a weirdo, I keep them.

It's either the new, new, math, or somebody isn't telling it straight.

reply to post by Bassago

I submit that the Central Banks along with governments are in active collusion to keep the worker class from realizing that "the building is on fire" so to speak. Keep the workers in their place, maintain the status qua, nothing to see here. They will keep this up until the end.

Indeed, more for them, less for us...
It's way easier to control poor people than it is to control people with money.

Money=Resources=Power.

reply to post by Happy1

They don't price healthcare or tuition into the index either though it has effect on millions of people. The FED index must go something like this:

Cheap DVD player - check
Spanish parakeet - check
1 month old aged Merlot - check
Gasoline - Yikes! get this outta here!

Many of the core commodity indices that can easily be tracked seem to indicate continued low inflation E.G. grains, pork bellies etc.

Recently I was shopping for tools to fix up the new man cave and suffered a little sticker shock.
Shopping around a little made a huge difference though.
Its like there is stuff with this new sky high suggested retail price competing with heavily discounted overstock.

What we are feeling as inflation may just be a reduction in some of the recession era price dumping deals?

Originally posted by Cauliflower
Many of the core commodity indices that can easily be tracked seem to indicate continued low inflation E.G. grains, pork bellies etc.

Recently I was shopping for tools to fix up the new man cave and suffered a little sticker shock.
Shopping around a little made a huge difference though.
Its like there is stuff with this new sky high suggested retail price competing with heavily discounted overstock.

What we are feeling as inflation may just be a reduction in some of the recession era price dumping deals?

These are very good points, especially the last one. Still the inflation index seems intentionally skewed to exclude the everyday essentials of modern life such as energy costs (especially gasoline.) I'm pretty sure the FED manipulates the numbers in order to suit their current requirements.

Looks like CNBC agrees with me.

this morning's Liesman-led cognitive dissonance at the PPI was smashed from the government's Matrix by Rick Santelli's frustration spilling over.

With a Fed increasingly forced to Taper - under the cover of a supposedly improving economy - the disinflation was suggested as a reason the Fed might use to keep the punchbowl there for longer...

Santelli was not amused by this perpetual put... questioning whether the governments approach to inflation is a way to "fudge the numbers." Liesman defense of the status quo is predictable to which Santelli barks, "Listen, I don't believe the government's calculations. There, I said it... I don't have better numbers; I have common sense;" adding that (just as we noted here with energy and real expenses) that "there's a difference between real life and the government."

Source
Common sense, that's the ticket!

Buy the Dip

Buy the dip. Warning it uses an explicative, which is why i used the link instead of embed.